HES(SZ:002963) Mei Ri Jing Ji Xin Wen·2025-11-16 10:55Core Viewpoint - Haosai Technology Group Co., Ltd. is facing legal challenges due to a criminal appeal filed by the People's Procuratorate of Xinzhou District, Wuhan, regarding a bribery case involving the company and its former chairman Dai Baolin [1][4]. Legal Proceedings - The company was fined 7 million RMB for unit bribery, while Dai Baolin received a three-year prison sentence with a four-year probation and a fine of 3 million RMB [1][4]. - The court's final ruling remains uncertain due to the ongoing appeal process initiated by the procuratorate, which argues that the initial sentence was too lenient [1]. Financial Impact - The fines and the amount to be returned to the state total approximately 28.52 million RMB, which represents 15.90% of the company's most recent audited net profit attributable to shareholders [5]. - The company reported a net profit of -26.31 million RMB for the first three quarters of 2025, a decline of 523.96% year-on-year [10][11]. Stock Performance - Haosai's stock has shown significant volatility, with a recent price of 19.17 RMB, reflecting a 44% increase over the past month and a 67% increase year-to-date [7]. - The company went public on October 28, 2019, with an initial offering price of 23.66 RMB per share, but has since experienced a decline in stock value [7]. Management Changes - Following legal issues, Dai Baolin resigned from his positions as chairman and general manager, with his son Dai Congqi taking over as the new chairman [6].